Novo Nordisk Plunges 24% on Profit Warning, CEO Change

On July 30, 2025, Novo Nordisk's stock experienced a 3.34% drop in pre-market trading.

Novo Nordisk, a Danish pharmaceutical giant, issued a profit warning on July 29, 2025, forecasting a decline in revenue and profits for the year. The company's stock plummeted 24% on the day, erasing over 600 billion euros in market capitalization. Novo Nordisk, known for its popular weight loss drugs Wegovy and Ozempic, has faced challenges due to production errors, marketing delays, and underperforming new drug trials. Competitors like Eli Lilly have surpassed Novo Nordisk with their products Mounjaro and Zepbound, which have higher prescription volumes in the U.S. Additionally, Novo Nordisk's new drug CagriSema failed to meet weight loss expectations, and its oral GLP-1 drug development lags behind Eli Lilly. In response, the company has appointed a new CEO to focus on repairing the U.S. market, optimizing channels, and accelerating the development pipeline.

On July 29, 2025, Novo Nordisk appointed Maziar Mike Doustdar, the head of its international business, as the new CEO. The company also significantly lowered its full-year financial guidance. The sales growth forecast, previously set at 13-21%, was reduced to 8-14%, and the operating profit growth forecast was cut from 16-24% to 10-16%. The company attributed the slowdown in Wegovy sales to the impact of "unsafe and illegal large-scale counterfeit drugs" and increased competition for Ozempic in the U.S. market. Analysts had previously expected Novo Nordisk to achieve a 16.6% sales growth for the year.

Novo Nordisk's new CEO, Maziar Mike Doustdar, emphasized the need to focus on cost management and improve execution. He acknowledged that the company needs to reallocate resources and enhance its performance culture. Despite the challenges, Novo Nordisk remains one of the most competitive players in the GLP-1 market.